b k duplex board ltd Management discussions

B.K. DUPLEX BOARD LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS Overall review, Industry Structure and Developments: Your Company is mainly engaged in the manufacturing and marketing of Duplex Board and Duplex Paper. The company s success has been driven by the pursuit of technological excellence in upgrading and modifying the manufacturing technologies so that to be one of the best in paper industry. The company enjoys excellent report with all its stakeholders and business constituents. Out Look: Opportunities and Threat The paper board industry as a whole continues to witness good trends. The overall increase in working capacity of the company, diversified product mix, expected economies of scale, highly responsive market conditions give us compelling reasons and surety for having optimistic outlook for substantial growth in the operating performance of your company in the times to come. Strengths 1. Excellent operating parameters. 2. Highly qualified, motivated and professionally competent workforce. 3. Adequate marketing network and large presence in institutional market. 4. Good acceptability in market place. Weaknesses 1. Industry highly cyclic in nature. 2. Prices and availability of basic raw materials, highly dependent on vagaries of nature. Company s Performance During the period under review, your company achieved a turnover and other income of Rs. 1.44 Lacs. However, due to increase expenditure the profit before tax stood at Rs. 0.73 lacs. Internal control System Your Company has adequate internal control systems, commensurate with its size and nature of business to ensure efficient utilisation and protection of assets, compliance with statutes and proper recording of all transactions. The company has also an Audit Committee constituted pursuant to the provisions of the Listing Agreement as well as under section 292A of the Companies Act, 1956 which reviews internal control system of the company from time to time besides looking into other areas in its scope. Financial performance with respect to operational performance Particulars 31-3-2011 31-3-2010 (Amount in Rs) (Amount in Rs) Total Income 0.00 1.44 Depreciation 0.00 0.00 Profit(Loss) before Tax (0.44) 0.73 Provision for Tax-FBT 0.00 0.002 Profit (loss) after Tax (0.44) 0.73